Oddbean new post about login | logout Which is why you would want to use a shared mint that you don't own. Depend on the mints that are capable of protecting themselves against liability. Also, an IRS auditor would request for any information they deem necessary to do their job, so you are not protected by 'nobody knows' logic. Better to not have any data to give them because it's all is some else's mint. And of course the mind doesn't have it either so...
And of you want to go on about how we need to pay our taxes then please provide at least one tax software package that can handle lightning transactions. Oh wait, there are none. Now what?
It's not that hard. You're just moving money around the network until you realize profit in your local currency. Just declare that income. Or don't. You probably can get away with declaring ignorance while the laws are so amorphous. You might get hit up for back taxes, but probably not evasion. Depends on your jurisdiction, of course.
You clearly don't know how capital gains work. It's FIFO. You have to match up each sale/spend transaction with a corresponding buy based on the FIFO rules. If you are buying coffee every morning, semding tips around, etc for 365 days It is nearly impossible to comply with. It has to be manually entered in. Also, there are numerous wallets installed. How many sats do you pass around and receive, etc. It all adds up.
The fed's aint getting shit for these zaps. FUCK EM https://image.nostr.build/b6d00944930e1bba5213ddc357959d4bcd7412e86f816a8a9dd8934f01b2cb74.jpg
well yeah not for these; they're gifts!
So you are unfamiliar with the de mimimis rule for crypto. You are required to report everything regardless of size. My tax software makes me enter in gifts, and any receipt is income. Doesn't matter if it's 21 sats. https://www.coindesk.com/policy/2023/09/19/crypto-wants-a-de-minimis-tax-exemption-in-the-us/
You are not familiar with section 988 of the US code. Personal transactions in foreign currency are tax free up to 200 dollars. I don't zap virtual currency. I zap Salvadoran satoshis
And it's much worse than paying 'back taxes'. The IRS puts you to work. They make you trace all your coins around the blockchain, asking for more and more information. A years worth of transaction data is not small. They will 'claim' this movement of funds is a taxible event even though you just moved it from your wallet A to wallet B, then you move it back, another 'claim' that it's income. So no they taxed you twice for the same event, which wasn't even a taxable event. Burden of proof is on you. Then eventually the agent gives up and you get assigned a new agent, start all over, picking up where the old one left off. Goes on for 3 years. All because you wanted to use lightning.
Really sounds awful. I sincerely hope you get it all sorted. Hopefully you learn some tricks and can come back to share your secrets.
There are no tricks, secrets. It's not a fair system. They make up the rules as they go. Want a tip? If you want to play by the rules then don't use bitcoin. The value prop of Bitcoin is permissionless which is incompatible with white markets by definition. If one is going to make transactions that follow the rules, there is little reason to have or use Bitcoin. In fact, it might even end up worse than just using fiat.
a mint you don't control has custodial risk. I'm not worried about taxes though. it's easy enough to just pay if you sell and have profit. AML and anti-terrorism "regulation" and enforcement are what you need to worry about. If your government declares any of this to be "anti-freedom" or "terrorist" money, your trial will not involve " innocent until proven guilty" or "reasonable doubt".
